Gloomy 3Q predicted

Blaming a slowdown in the nation's economy and expansion expenses, Chicago-based USFreightways Corp. announced late Friday that it expects an earnings downturn in the third quarter. The company also foreshadowed a gloomy fourth quarter if conditions remain the same.

The supply-chain management company expects to report earnings of 90 to 95 cents per diluted share in the third quarter. This is down from $1.07 per diluted share in the year-earlier period, and fails to meet analyst predictions of $1.11 per share.

The loss has to do with unit USF Worldwide, which has heightened expenses as it expands its Asian network. Fuel costs also are contributing to the earnings slide.